Nespresso continues to invest in Switzerland with third production centre

Daniel Lagger, Operations Director of Nestlé Nespresso SA, explains why Nespresso chose to build its third production centre in Romont, in the canton of Fribourg, in Switzerland and what this decision means for the company.

Why is Nespresso building a third production centre?

The construction of the new factory at Romont is a strategic investment in our long-term business development. It will enable us to meet growing global consumer demand and will reinforce our capacity to continue mastering the quality that our Club Members and consumers worldwide expect of Nespresso coffee.

You mention quality. What role do the Nespresso production centres play in delivering highest quality coffees to Club Members and consumers worldwide?

It is in the production centres that our skilled coffee experts specially blend, roast and create each Grand Cru coffee. They provide the expertise to transform the highest quality coffee beans from the world’s finest producing regions into the Nespresso Grands Crus that consumers love and trust for their consistently high quality in cup result. Our state-of-the-art production centres play a key role in the development and delivery of the quality Nespresso coffees that our consumers have come to expect.

Why did you choose Switzerland as a location?

Strategic and quality considerations were the key drivers in our decision to build in Switzerland. Nespresso is, first and foremost, a Swiss company. The decision to invest in our home country allows us to draw on Swiss excellence and to build on the existing Nespresso team’s expertise in Switzerland. Through hard work and strategic development, we have become the global reference for exceptional quality in portioned coffee, but our roots remain here. Nespresso shares with Switzerland an image of quality and innovation at home and abroad. Choosing Switzerland as the location of our third production centre reinforces this shared image and brings with it a number of concrete benefits.

From a strategic perspective, Switzerland has created a political framework that encourages economic development, with clear institutional structures and processes. The strong infrastructure, central location and the skills and quality of the workforce in Romont, in the canton of Fribourg, and the surrounding region will play a significant role in delivering on the success of this investment.

What does the investment in the third factory mean for Switzerland in terms of economic impact?

Our new production centre will serve as an economic stimulus for local and regional businesses. Nespresso plans to invest approximately CHF 300 million in the construction of the production centre, which is expected to be operational in 2015. To meet on-going growth in consumer demand, we will look at options for extending the facility at a later stage.

How many jobs will be created?

We estimate that we will be creating about 200 jobs at this location by the end of the first year of operation and at least twice of that beyond 2015. In addition to the jobs created by the operation of the production centre, we estimate that three indirect jobs will be created for each direct job. The construction of this new facility will also have a positive impact on other local and regional businesses.

How is the Nestlé Creating Shared Value approach applied to the new facility?

Consistent with the Nestlé approach of Creating Shared Value, we are anchoring the design, construction and operation of the factory within the Nespresso sustainability framework, called Ecolaboration™. Sustainability is embedded into the brief for the factory – from its conception to its operation. We will use the latest technology to improve operational efficiency and productivity, while reducing its overall environmental footprint.

The factory will capitalise on the sustainability experience gained at the Nespresso production centres in Orbe and Avenches. For example, in Avenches, the factory uses the most advanced roasting techniques to save approximately 15% of the energy needed to heat the building. One of the attractive features of the site is the direct link to the rail system. It will be used for both supply delivery and finished goods distribution. Today, we have 100% of green coffee delivered by rail to our sites in Orbe and Avenches.